Unauthorized Practice of Law

State licensing laws prohibit licensees from performing tasks best left to licensed attorneys. How can you best avoid even unintentional unauthorized practice of law? Know what your state defines as unauthorized practice of law.

• Don't draft your own agreements or forms.
• Whenever possible, use approved agreement forms from your local or state association.
• If your client or transaction requires a form not provided by your association or firm, encourage the client to engage an attorney to draft the form.
• Make changes to forms (adding or striking provisions) only to the degree allowed by law in your state.
• Use standard, approved language in contingencies, addenda, and additional provisions areas.
• Don't charge a fee for preparing transaction documents. Don't interpret contract provisions. You can generally explain the purpose of a provision, but don't provide advice to the client regarding the legal implications of those provisions. Acceptable Explanation: "This clause in the contract describes what happens if either party breaches the contract." Crossing the Line: "This clause in the contract says that if the seller breaches the contract, you're guaranteed a full refund of your earnest money."
• Always encourage clients to seek legal advice before signing any legal document.
• Don't advise clients on landlord/tenant rights and responsibilities.